Jason Urban, the global head of trading at Galaxy Digital, has offered an optimistic outlook for the cryptocurrency market in 2024, with a focus on the continued trend of Bitcoin ETFs.
Before his tenure at Galaxy Digital, Urban served as the CEO of cryptocurrency company DrawBridge Lending, which Galaxy Digital acquired in 2020. Like many in today's crypto business, he began his career at Goldman Sachs, one of the largest investment banks globally.
In a December 2023 interview with Bloomberg Crypto, Urban observed noticeable shifts in Galaxy clients' behaviors. He particularly pointed out the significant influx of investors adopting the "buy and hold" approach. This strategy starkly contrasts the "quick money" mentality often linked to the crypto space. Urban expressed enthusiasm about the increasing number of long-term investors, noting that this trend signifies a resurgence of interest in the crypto market.
“Here at Galaxy we're seeing real buyers come in, people who are not fast money, but who are buy and hold, who are believing in it. And quite frankly, it's really encouraging because when I come on the desk and they say X, Y, Z just bought. We've been talking to them for two years. And finally they've decided to pull the trigger,” shared Jason.
One key event Urban views as a catalyst for positive developments in the crypto market is the potential approval of a Bitcoin ETF. He believes such ETFs will not only build investor confidence but also create a structural foundation to increase capital flow into the crypto ecosystem. Urban sees this as a significant step forward, making the market more accessible and inviting to a broader range of participants.
Reflecting on the market dynamics of 2021, Urban touched on the surge and subsequent challenges in the crypto lending and borrowing sector. He suggested that this sector might rebound, though not as quickly as desired. He stressed the importance of maintaining proper infrastructure for the return of previous market activity levels. “We have a lending business now we've always leant over, secured and have been responsible with it,” he remarked.
Addressing industry criticisms, Urban responded to JPMorgan Chase CEO Jamie Dimon's comments that the only real use for cryptocurrencies is criminal activity. Urban refuted this notion, pointing out the traceability and transparency of blockchain technology. He emphasized that blockchain's immutability makes cryptocurrencies more traceable than physical dollars.
“If I could look at how I would protect my brand or my ecosystem, crypto and blockchain is a decent remediating action, right? ...So if you're a bad guy doing bad things, you're not using crypto, you're going to use other things that can't be tracked,” he confidently stated.
In anticipation of the new year, Jason Urban offers a positive outlook for the 2024 crypto market. The rise in long-term investors, possible ETF approval, and evolving crypto lending dynamics signal a maturing industry with expanding participation and opportunities.
